Godless said:
Ever heard of Michael C. Lynch?
Its more than a little ironic that old Michael the economist says that there is no reason why oil should be so high and that geology isn't the problem.
Well, if the economist is saying that geology isn't the cause of high oil prices, that only leaves economics as the explanation, which he, the economist, can't explain.
So, if the economist has no economic explanation (notice he no longer cites a terror premium, he just scratches his head), maybe he ought to leave the geological explanation to the geologists, like Deffeyes and Campbell, for an answer.
Ophiolite said:
Golgo you have previously given some very thoughtful and accurate posts on the this energy topic. You really need to go do some basic checking of your facts here. I actually thought I was reading a statement by Godless (sorry Godless). This is simple nonsense. Please confirm you understand that so I don't have to dig up the data for you.
In the energy crisis about 35 years ago, we saw an ad from the American Electric Power company. It's a bit reassuring, saying don't worry too much because:
we're still sitting on half of the world's supply of coal. Enough for over 500 years. (1)
Now where did that 500 year come from? It may have had it's origin in a report to the Committee on Interior and Insular Affairs in the United States Senate, because in that report we find this sentence:
At current levels of ouput and recovery, these American coal reserves can be expected to last more than 500 years. (2)
There is one of the most dangerous statements in the literature. It's dangerous because it's true. But it isn't the truth that makes it dangerous, the danger lies in the fact that people take the sentence apart. They just say "Coal will last 500 years". They forget the caveat with which the sentence started. Now what were those opening words?
At
current levels.
What does that mean? That means if and only if we maintain zero growth in coal production.
So let's look at a few numbers. We go to the Annual Energy Review (3) published by the Department of Energy. They give this as the coal demonstrated reserve base in the United States:
Coal Demonstrated Reserve Base:
R = 4.7 x 10^11 tons*
It has a footnote that says:
* About one half of the demonstrated reserve base of coal in the United States is estimated to be recoverable.
You cannot recover and get out of the ground and use 100 percent of the coal that's there.
So this number:
R = 2.4 x 10^11 tons
is half of that number. We'll come back to those in just a moment. The report also tells us that in 1971 we were mining coal at this rate:
r0 = 5.6 X 10^8 tons/yr
20 years later at this rate:
r0 = 9.9 X 10^8 tons/yr
Put those numbers together and the average growth of coal producion in that 20 years was 2.86% per year.
And so we have to ask how long a resource would last if you have steady growth in the rate of consumption until the last bit of it is used.
I'll just show you the equation here for the expiration time:
EET = Te = ( 1 / k ) ln ( k R / r0 + 1 )
I'll tell you it takes first year college calculus to derive that equation. So it can't be very difficult. You know, I have the feeling there must be dozens of people in this country who have had first year college calculus.
But let me suggest, I think that equation is probably the best kept scientific secret of the century. Now let me show you why.
If you use that equation to calculate the life expectancy of the reserve base (or of the one half they think is recoverable) for different steady rates of growth, you find that if the growth rate is 0 the small estimate would go about 240 years and the large one would go close 500 years. So that report to the congress was correct. But look what we get when we plug in steady growth:
Lifetime in years of United States coal (EET). The lifetime (EET) in years of U.S. coal reserves (both the high and low estimate of the U.S.G.S.) are shown for several rates of growth of production from the 1972 level of 0.5 (x10^9) metric tons per year.
Code:
High Estimate (yr) Low Estimate (yr)
Zero 2872 680
1% 339 205
2% 203 134
3% 149 102
4% 119 83
5% 99 71
6% 86 62
7% 76 55
8% 68 50
9% 62 46
10% 57 42
11% 52 39
12% 49 37
13% 46 35
Back in the 1960's, it was our national goal to achieve growth of coal production up around 8% per year. If you could achieve that and continue it, coal would last between 37 and 46 years.
President Carter cut that goal roughly in half, hoping to reach 4% per year. If that could continue, coal would last between 59 and 75 years.
Then there's that 2.86, the average for a recent period of 20 years. If that could continue, coal would last between 72 and 94 years. That's within the life expectancy of children born today.
The only way you're going to get anywhere near this widely-quoted 500 year figure, is to be able to do simultaneously 2 highly improbable things.
Number 1, you have to figure out how to use 100% of the coal that's in the ground.
Number 2, you've gotta figure out how to have 500 years of 0 growth in coal production.
Look at those figures. Those are facts.
Back in the 1970's there was great national concern about energy, but these concerns dissappeared in the 80's. Now the concerns about energy in the 70's prompted experts, journalists, and scientists to assure the american people that there was no reason to be concerned.
Now lets go back and look as some of those assurances from the 70's, so we can see what to expect now that the energy crisis is returning.
We spent about $25 billion for imported oil last year" Beall said, adding that any reduction in the dependence on imported oil could be greatly aided by increased use of coal. He estimated that America's coal reserves are so huge, they could last, "A minimum of 300 years, probably a maximum of 1000 years." (4)
Here's the director of the energy division of the Oak Ridge National Laboratory telling us how expensive it is to import oil. Telling us we must have big increases (rapid growth) in our use of coal. Under these conditions, he estimates
"America's coal reserves are so huge, they could last a minimum of 300 years, probably a maximum of 1000 years."
You've just seen the facts, now you see what an expert tells us and what can you conclude?
There was a 3 hour television special on CBS on energy. The reporter said:
By the lowest estimate, we have enough (coal) for 200 years, by the highest, enough for more than a thousand years. (5)
You've just seen the facts, now see what a journalist tells us after careful study, and what can you conclude?
In the Journal of Chemical Education on the page for high school chemistry teachers is an article by the scientific staff of the journal.
They tell us:
Our proved coal reserves are enormous (at least 120 billion tons)...
and they give a figure.
... these could satisfy present U.S. energy needs for nearly 1000 years" (6)
Well, let's do long division.
You take the coal that's there:
120 x 10^9 tons
divide it by what was then the current rate of consumption
/ 670 x 10^6 tons per year
you get:
= 180 years.
Now they didn't say "current rate of consumption". They said "present U.S. energy needs". Coal today provides about 1/5'th, about 20% of the energy we use in this country.
So if you would like to calculate how long this quantity of coal could satisfy present U.S. energy needs, you have to multiply the denominator by 5.
When you do that, you get 36 years. They said nearly a thousand years.
Newsweek Magazine in a cover story of energy said:
At present rates of consumption, we have enough coal for 666.5 years. (7)
Now the .5 means they think it will run out in July instead of January.
If you round that off and say roughly 600 years, that's close enough to 500 to lie within the uncertainty of our knowledge of the size of the resource. So with that observation, that's a reasonable statement.
But what this led into was a story about how we have to have major rapid growth in coal consumption.
Well it's obvious, isn't it? If you have the growth that they're writing about, it won't last as long as they said it would last with zero growth.
They never mentioned this!
Dr. Bartlett wrote them a long letter and told them that he thought it was a serious misrepresentation to give the readers the feeling that we can have all the growth they're writing about and still have coal around for 600 years. He got back a nice form letter, had nothing to do with what he tried to explain to them.
From Time magazine:
Energy industries agree that to achieve some form of self-sufficiency, the U.S. must mine all the coal that it can. (8)
Now think about that for just a moment...
... Let me paraphrase it:
"The more rapidly we consume our resources, the more self-sufficient we'll be".
Isn't that what it says?
David Brower has referred to this as the policy of
"Strength through Exhaustion." (9)
Here's an example of
"Strength through Exhaustion"":
William Simon, Energy Advisor to the President of the United States.
Simon says:
We should be trying to get as many holes drilled as possible to get the proven (oil) reserve. (10)
the more rapidly we can get the last of that oil up out of the ground and finish using it... the better off we'll be!
There are numerous more examples of this kind of lunacy and non-math based reserve estimates, but I won't list them all here for the sake of brevity.
So I give you a very fundamental observation:
Don't believe any prediction of the life expectancy of a nonrenewable resource until you have confirmed the prediction by replicating the calculation.
As a corollary we have to note that the more optimistic the prediction, the greater the likelihood that it is based on faulty arithmetic or on no arithmetic at all.
Sources:
1. "The call to greater energy independence". American Electric Power Company, Inc., ad in Newsweek, Nov. 3, 1975.
2. "Factors Affecting the Use of Coal in Present and Future Energy Markets". A background paper prepared by The Congressional Research Service at the request of Sen. Henry M. Jackson, Chairman of the Committee on Interior and Insular Affairs of the United States Senate pursuant to Senate Resolution 45, a National Fuels and Energy Policy Study Serial No. 93-9 (92-44) (U.S. GPO, Washington, D.C., 1973) pp. 41, 42, 15.
3. "Annual Energy Review": 1991, U.S. Department of Energy, pgs. 109, 189
4. "Boulder Daily Camera", July 5, 1975
5. C.B.S. reporter Wagner, C.B.S. television special program on energy. August 31, 1977
6. "Energy Review", An article by the staff of the Journal of Chemical Education. April, 1972. pg. 253
7. Newsweek magazine, July 16, 1979
8. Time magazine, May 19, 1975. p. 55.
9. D. Brower, Not Man Alone, Vol. 6, No. 20, Nov. 1976; Friends of the Earth, 529 Commercial, San Francisco.
10. C.B.S. Television, August 21, 1977.